Real World Housing Prices in Central Massachusetts
The U.S. Census Bureau claims the average cost of a home in 2010 was $248,000. Consider the number of homes for sale across the country, and that figure sounds high. Even at the height of the U.S. economic meltdown, homes in Massachusetts were selling far above $248K. In the current market, $250,000 is real world pricing in my area. At this rate, what kind of house can you buy in north central Massachusetts? In addition, why are brand new four-bedroom homes selling at this mediocre price?
Prices Are Now Dropping
In the central portion of the Commonwealth, you can now buy one heck of a house for $250,000. For almost three years, I have kept a watchful eye on the homes for sale in my part of the state. My husband and I have been hoping to stumble upon a deal so sweet we cannot pass up the opportunity. That has not happened yet, though.
Until recently, the real estate market remained saturated with homes that were outrageously overpriced. However, homes that were selling for over $300,000 a year ago are now in the range of $250,000 or less.
Brand New Homes a Bargain
I am witnessing something atypical in central Massachusetts real estate. Brand new homes or homes that are only a couple of years old, are selling for less than houses built 20 and 30 years ago. What is behind this unusual trend?
The Start of the Recession in 2008
It likely has everything to do with the recession. The recession really began in Massachusetts in the spring of 2008. I know this because I am an 18-year small business owner. My business all but folded that year. The failing economy followed hot on the heels of a booming real estate market and house building explosion.
New three and four-bedroom homes were selling for $350,000 and higher in my area. These homes were not worth that crazy amount. However, people from the bigger cities were snapping these houses up. If I compare it to big-city real estate such as in Boston, $350,000 was a steal. Unfortunately, as the economy continued to nosedive, people were losing their jobs left and right.
High Mortgage and No Job
Many people could no longer afford to pay those high mortgages. As well, owing the bank a ton of money meant homeowners had to try to get as much as they could for these overpriced homes. Many people here in the country had no interest in, nor the financial means to consider a $350,000 home.
Even though home prices have dropped considerably, the lending process is now extremely stringent. Scores of people are finding it difficult to meet the banks revamped qualifications. Banks want as much as 20 percent down on a home. It is really a catch-22.
Luxury House and Yard for $250,000
If you are lucky enough to have a steady job, respectable income, and a good chunk of money saved for a down payment, you can buy a gorgeous three or four bedroom house in central Massachusetts for $250,000. Newer houses here span over 2000 square feet. There are plenty of homes on the market that grace several acres of land.
If we could figure out how to make the American dream affordable again, families would be living in all these beautiful, empty homes.
More from this contributor:
Why I am Replacing My Car Instead of Repairing It
The Downside of Multitasking in Small Business
Why I Replaced Two Key Appliances
Prices Are Now Dropping
In the central portion of the Commonwealth, you can now buy one heck of a house for $250,000. For almost three years, I have kept a watchful eye on the homes for sale in my part of the state. My husband and I have been hoping to stumble upon a deal so sweet we cannot pass up the opportunity. That has not happened yet, though.
Until recently, the real estate market remained saturated with homes that were outrageously overpriced. However, homes that were selling for over $300,000 a year ago are now in the range of $250,000 or less.
Brand New Homes a Bargain
I am witnessing something atypical in central Massachusetts real estate. Brand new homes or homes that are only a couple of years old, are selling for less than houses built 20 and 30 years ago. What is behind this unusual trend?
The Start of the Recession in 2008
It likely has everything to do with the recession. The recession really began in Massachusetts in the spring of 2008. I know this because I am an 18-year small business owner. My business all but folded that year. The failing economy followed hot on the heels of a booming real estate market and house building explosion.
New three and four-bedroom homes were selling for $350,000 and higher in my area. These homes were not worth that crazy amount. However, people from the bigger cities were snapping these houses up. If I compare it to big-city real estate such as in Boston, $350,000 was a steal. Unfortunately, as the economy continued to nosedive, people were losing their jobs left and right.
High Mortgage and No Job
Many people could no longer afford to pay those high mortgages. As well, owing the bank a ton of money meant homeowners had to try to get as much as they could for these overpriced homes. Many people here in the country had no interest in, nor the financial means to consider a $350,000 home.
Even though home prices have dropped considerably, the lending process is now extremely stringent. Scores of people are finding it difficult to meet the banks revamped qualifications. Banks want as much as 20 percent down on a home. It is really a catch-22.
Luxury House and Yard for $250,000
If you are lucky enough to have a steady job, respectable income, and a good chunk of money saved for a down payment, you can buy a gorgeous three or four bedroom house in central Massachusetts for $250,000. Newer houses here span over 2000 square feet. There are plenty of homes on the market that grace several acres of land.
If we could figure out how to make the American dream affordable again, families would be living in all these beautiful, empty homes.
More from this contributor:
Why I am Replacing My Car Instead of Repairing It
The Downside of Multitasking in Small Business
Why I Replaced Two Key Appliances
Published by Cathy A Montville - Featured Contributor in Business & Finance
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12 Comments
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Well done - still an unstable real estate market in most places in the country.
Oh, how nice it will be when the American dream is affordable again.
Finally able to leave comments again. You can't buy a toolshed at the Jersey Shore for 250k! Prices here are still high.
Hope you stumble upon one of those deals you're looking for.
Good article~
good info, thanks!
great work on this
Too much money is being shipped overseas, no thanks to the foreign loving politicians in Washington. Our country last, is the change many have been waiting for, whether they knew it or not.
It's actually worse than we think. In my neighborhoods, homes aren't selling at all. Home sales have stalled badly across the country, so it's less of a local thing than it is a widespread nationwide slump to near stop.